I received this “Market Watch” article from Michael Fink at CountryWide. I found it very interesting! It discusses interest rates, the sale #’s from this years Black Friday, etc. and how what this means about the economy, etc. Take a look:
“PRESENT MARKET CONDITIONS- The Federal Reserves decision not to push rates higher on Tuesday was a turning point because its policy-making committee had raised interest rates a quarter-point each of the last 17 times it has met, dating back to June 2004.
But last month Fed Chairman Ben Bernanke told a Senate committee that the economy appeared to be slowing enough to rein in inflation. Housing starts moved higher in October, after 3 consecutive months of decline, the US Census Bureau & HUD reported. The stock market has stayed up due to the sinking dollar, which has benefited companies that depend on foreign sales. The indicator to watch most closely to gauge the likelihood of further economic deterioration is the labor market. The number of workers applying for jobless benefits fell by 11,000 recently & suggests job market deterioration has been modest. Retail sales performance over the Thanksgiving weekend is closely watched because it accounts for up to 8 percent, or roughly $40 billion, of all holiday sales, according to the National Retail Federation, the industry trade group. On Black Friday, retail sales rose 8.3 percent, the biggest increase in 3 years, according to ShopperTrak, a research company. However, it appears that consumers are spending more carefully due to rising energy costs, falling home prices & a tight credit market.
EXPECTATIONS- Quicken Loans Chief Economist Bob Walters says the recent loosening of credit, is bringing buyers to the market & beginning to prompt builders to start on new homes. “New home buyers are benefiting from the law of supply & demand, as they take advantage of lower prices & other builder incentives, in addition to attractive long term interest rates. With the up tick in housing starts, homebuilders are also seeing the effects of loosening credit, which is helping attract buyers back into the market for a new home.” Walters said.
GUIDANCE- Mortgage rates continue to be at historic lows. If you are considering purchasing or refinancing your home, it’s critical for you to work with…professional[s] who [are] committed to understanding your needs and advising you [properly].”
My Arizona Home Team are expert realtor consultants and experts on energy efficiency. We can advise you, at no cost to you, on the home buying or selling process and on energy saving tips to keep your utility costs down. This is especially important if you are thinking about buying a new build as energy costs continue to rise! We help you with your walk-through inspections for FREE. Please don’t register at a new build community without calling My Arizona Home Team first!